DAP Fertiliser Crisis Made in China

Context: China’s informal ban on DAP exports to India during the crucial sowing season has disrupted supply chains, and has exposed India’s strategic dependence on the geopolitical rival.

DAP Fertiliser in Indian Agriculture

• India is the largest importer of Di-Ammonium Phosphate (DAP) in the world, the second-most used fertiliser in the country after Urea.
• DAP contains - 46% Phosphorus (P) and 18% nitrogen (N), and is critical during sowing for root and shoot development.
• China has historically been the top exporter of DAP to India. 80% of India’s speciality fertilisers- crucial for high-value horticultural crops like fruits and vegetables, come from China. 

China’s Informal Weaponisation of Trade: 

Informal Export Ban on DAP: 

• China has stopped exporting DAP to India without an official notification. 
• Until 2023-24, China was a prominent supplier of DAP to India. 
• In 2024-25, imports from China fell from 22.9 lakh tonnes (LT) in FY24 to 8.4 LT in FY25. 
• Since January 2025, not a single tonne from China has been imported. 

Impacts on India

Shortage of Di-Ammonium Phosphate (DAP) the second most-used fertiliser in India during the peak kharif sowing season.

• Rise in DAP Prices: 
  • DAP import prices rose from ~$515/tonne (mid-2024) to $810+/tonne (mid-2025).
  • DAP prices in local markets spiked from the official MRP of ₹1,350 to ₹1,700+ per 50-kg bag due to shortages and hoarding.
• Distress among farmers due to erratic supply and growing black market.
• Shortage-driven crop damage may raise prices of vegetables, pulses, and oilseeds, fuelling food inflation.
• Fertiliser units may struggle to meet demand, leading to underproduction and reliance on second-tier alternatives like Single Superphosphate (SSP) and Ammonium Phosphate Sulphate (APS). China's indirect control over upstream phosphate resources affects India’s ability to domestically manufacture DAP. 
• Indian importers have to source more phosphates from Saudi Arabia, Morocco, Russia and Jordan, however, none of these countries have been able to fill the void left by China.

Way Forward

• Supply diversification: Establish new supply lines from Morocco, Saudi Arabia, Russia, etc.
• Boost Domestic Production: Invest in reviving and upgrading public and cooperative sector fertiliser units.
• Subsidise innovation in green and nano-fertilisers to reduce import dependence.
• Like the proposed India Rare Earth Mission, create a National Fertiliser Mission with production-linked incentives, research, and domestic backward linkages.
• Leverage multilateral forums (e.g., WTO) to raise the issue of informal trade blockades.
• Explore bilateral pressure through BRICS or SCO diplomatic backchannels.
• Improve real-time logistics and digital tracking of fertiliser distribution and direct benefit transfers for fertiliser subsidies to bypass black-market exploitation.

India's fertiliser crisis is a strategic wake-up call. It offers an opportunity for India to reset its fertiliser ecosystem toward efficiency, resilience, and autonomy.

Key Facts: 

• DAP contains 46% Phosphorus (P) and 18% Nitrogen (N). Experts recommend that Indian farmers should be discouraged from applying fertilisers with very high individual nutrient content- be it DAP (46% P); Urea (46% N) and Muriate of Potash (60% potassium or K).
• Ammonium phosphate sulphate (APS), a NPKS complex (20: 20: 0: 13), has emerged as India’s third most consumed fertiliser after urea and DAP. APS is more balanced i.e., has nutrients in the right quantities and proportions for effective absorption by the plant roots and leaves. 

Other Examples of China's Strategic Trade Weaponisation: 

• In 2010, China halted rare earth exports to Japan amid the Senkaku Islands dispute.
• In 2024-25, China restricted rare earth magnet exports to India, affecting defence and EV sectors.
• In 2025, Chinese firms refused to supply parts for tunnel boring machines used in Indian infrastructure.

Also Read: Bio & Organic Fertilisers